One day I was having a chat with one of my close friend on facebook and he was asking me where he could invest his money and expect profits. I replied him "crypto" and he was like what do you mean by "crypto" I then replied, I mean cryptocurrency but my friend still did not understand what I meant. I had to explain to him what cryptocurrency means and how it works.
So, my discussion today is on cryptocurrency, its meaning and how it works. Before you proceed, check out my post on Cryptocurrency terminologies .
According to Wikipedia
A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, to control the creation of additional units, and to verify the transfer of assets. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control of each cryptocurrency works through a blockchain, which is a public transaction database, functioning as a distributed ledger.
According to Dictionary.com
Cryptocurrency is a digital currency or decentralized system of exchange that uses advanced cryptography for security.
According to Oxford Dictionary
A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
According to the Cambridge online Dictionary
Cryptocurrency means: A digital currency produced by a public network, rather than any government, that uses cryptography to make sure payments are sent and received safely
Definition of cryptocurrency According to Merriam Webster
Any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions Virtual currency bitcoin hit the mainstream in 2014. Bitcoin ATMs started springing up all over the world, allowing people to exchange cash for the cryptocurrency, a secure digital payment outside of conventional financial institutions.
According to Samexycool
Cryptocurrency is simply a peer-to-peer digital currency that is validated by cryptography.
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